Updated Cost of Super Storm Sandy
The so called Superstorm Sandy that struck the east coast of the United States after causing wide spread damage and casualties in the Caribbean is expected to rank as the sixth-costliest catastrophe with up to $25 billion in insured losses based on the latest estimates.
Catastrophe modelers peg Sandy’s insured losses between $10 billion and $25 billion. If the storm’s insured losses reach $18.8 billion—the average of the modelers’ midpoint estimates—Sandy’s cost to the Insurance Industry would be exceeded by only five disasters, these are:
- Hurricane Katrina, Gulf Coast, 2005: $48.7 billion
- Japan earthquake and tsunami, 2011: $38.6 billion
- Hurricane Andrew, Florida and Louisiana, 1992: $25.6 billion
- 9/11 attacks, New York, 2001: $24.6 billion
- Northridge earthquake, Los Angeles, 1994: $23.9 billion
It is comforting for the insuring public to konw and understand that the cost of Sandy is just a fraction of the in excess of $550 billion in claims-paying capital that the insurance industry had at the start of this year’s north Americal hurricane season.
Equally important is the fact that the Insurance Industry remains very strong in the wake of Sandy and the other natural catastrophes that have hit the world over the past few years including the huge losses paid out and continuing to be paid out in Australia and New Zealand following the earthquakes, floods, bush fires and storms.
Australia has had so many natural disasters during the December January period. As a case in point, 1974 saw Brisbane flooded and Cyclone Tracey book end the year, with the floods in January and the cyclone in December. Burglars also like to work after Christmas to steal the latest gifts brought into the home while factories and offices that have closed for the break are also targeted.
While there is a lot to do leading up to Christmas and the holiday period, checking your insurance for the level of coverage and adequate sums insured is important. If in any doubt an insured should discuss it with their insurance broker or adviser.
As I have repeatedly said, insurance is not about cost it is about protection.